Rich and Poor

In my syndicated newspaper column, to appear during next two weeks in seven papers around the state, I analyze a report from a couple of liberal advocacy groups saying that the income of "the rich," the highest 20% of earners, has grown faster than the lowest 20% of earners. "So," was my response. One argument was that the report really didn't mean anything because our society is dynamic, meaning that the composition of the earning groups changes, and the changing composition of the earning groups means they can't be compared. 

Support for the notion of a dynamic society from PNC Wealth Management, part of The PNC Financial Services Group. Each year PNC surveys Americans with more than $500,000 of investable assets. The newest survey (see http://pnc.mediaroom.com), released yesterday, says that 60% of the respondents made their money by the old fashioned way—through work, business ownership or investments. Only 6% inherited their money and 25% had both inheritance and investments. What the survey means is the 69%—those earning their money—were at one point not in the highest earning group. In fact, it's a safe bet that some were in the lowest group.